A Question Mark For Thailand’s Economic Recovery

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A Question Mark For Thailand’s Economic Recovery

Written By - Thai Business Box. 28-10-2020.

Since the beginning of the pandemic, economists have been trying to use alphabet  letters to best describe their country’s economic recovery based on the economic policies that the government has put into place to stimulate and engineer economic growth back and beyond.

The shape of the alphabet chosen depends on the GDP graph and such letters as V, U,W or L were the norm to represent economic recovery of a country.

A V-shape is when economic growth fell fast but bounced back quickly, the U-shape is when the economy is down for a while longer then starts to recover, a W shape sees more of an up, down scenario and is when an economy passes through a recession into recovery and then immediately turns into another recession while the L-shape is pretty dismal, spelling recession and not achieving recovery at all.

At the onset of the crises, simple letters V,U,W or L sufficed but with recovery being more complicated than thought earlier, economists are resorting to other symbols to explain the economy such as the square root which represents a big dip and the recovery stabilising at a much lower level than pre-pandemic while the Nike Swoosh with the tail containing several low case ws points to a recovery with a dip and several ups and downs. Continue Reading Below ... 

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In Thailand’s case, it is hard to make a prediction on how the government’s vision will play out because apart from stimulus packages and investments in mega transportation and infrastructure projects, which is more of the same tired old policies of burning money, there is not much else on guidelines or direction of new growth engines that will support sustainable growth across all sectors and see Thailand through to Post Covid economy.

Politics and political crises plays central role in the country at the moment while the economic crises is pushed out of the frame and until there is a reverse of that positioning, the best symbol that represents Thai economy at the moment is a question mark ?